Research On Pledging Intellectual Property Rights For Loans In Scientific And Technologic SMEs

Technology is an important source of improving comprehensive national power andinternational competitiveness of a country in today’s world， thus scientific andtechnological SMEs take an more and more important role in the economic and socialdevelopment of a country.The rapid development of scientific and technological SMEsneed financial support，but at present China’s financial market cannot meet the supportscientific and technological SMEs need for their development， even has seriouslyhampered its development. Scientific and technological SMEs often lack the physicalassets available for mortgage，with its core assets are usually advanced technology，patents， and copyrights and so on．Pledging intellectual property for loans is a newfinancing way which can reduce the restrictions of SMEs’ financing．This paper takes scientific and technologic SMEs pledging intellectual propertyrights as its object， with theoretical analysis and case analysis methods． It analyzes andstudies on the feasibility and necessity of pledging intellectual property rights for loans inthe scientific and technologic SMEs in China． It explores the reasons for restricting thebusiness of pledging intellectual property rights for loans， finding that the root cause isthe risk factors and the resulting high transaction costs， therefore， to find several riskdiversification mechanisms． It summarizes the practice of pledging intellectual propertyfor loans which has conducted abroad and at home， finds the important role of thegovernment in carrying out the activities of pledging intellectual property for loans， butthe market-oriented model is sustainable patterns and trends in the final． This paperselects two case of pledging intellectual property rights for loans，one is a failure that thebank couldn’t recover the loan，and the other is the successful model of L asset ValuationCompany. The analysis finds that the most fundamental reason for the success andfailure is risk control， so we make suggestions for pledging intellectual property rightsfor loans that the multi-pronged take various approaches to reduce the risk and promotethe development and market-oriented business of intellectual property mortgage for loans．...